Since the Ethereum Foundation proposed ZK-Rollups as one of the most efficient ways to scale Ethereum, this technology has become extremely popular and has managed to revolutionize the blockchain ecosystem. As a result, Starknet has established itself as one of the most impactful projects in the crypto world and its functions are widely used by developers.
But what is it and what makes Starknet such an interesting project? What makes it different from other similar platforms? Is it a good idea to buy STRK tokens? All these questions and more have led us to create this article for you to know in depth what it is all about:
What is Starknet
Starknet is an Ethereum Layer 2 (Layer 2) scaling solution, developed by StarkWare, which uses ZK-Rollups technology to improve network scalability and privacy. This technology allows a large number of transactions to be processed off-chain before being consolidated into a single transaction that is recorded on the Ethereum blockchain. This process not only significantly reduces gas fees, but also relieves congestion on the network, resulting in faster and cheaper transactions.
The core of Starknet is based on STARKs (Scalable Transparent ARgument of Knowledge), a type of cryptographic proof that allows the integrity of transactions to be verified without revealing the underlying data. This technology is designed to be resilient to quantum computing and optimize data compression, which contributes to the scalability and security of the network.
Starknet operates as a decentralized, permissionless network, allowing developers to deploy smart contracts that can execute complex calculations off-chain, while maintaining the security and integrity of the data when registering it on the Ethereum mainnet. This makes it an ideal environment for developing decentralized applications (DApps) in sectors such as decentralized finance (DeFi), non-fungible token markets (NFTs), and enterprise solutions, without the traditional scalability limits of Ethereum.
Starknet uses a specialized virtual machine, the Cairo VM, optimized to generate proofs of validity efficiently. Unlike most other validity rollups that use SNARK proofs, Starknet uses STARK proofs, which offer increased security and scalability.
Let’s take a closer look at how validity rollups work:
What are validity rollups and why are they so important?
Validity rollups are a scalability solution for blockchains that seeks to improve processing capacity without compromising security or decentralization. They are based on an approach where transactions are processed outside the main network at an additional layer. However, unlike other methods, validity rollups generate cryptographic proofs, known as “validity proofs,” to confirm that all transactions are correct before sending a compressed summary to the L1.
These tests ensure that each transaction processed at L2 is valid without needing to be rechecked at L1. This mechanism not only allows for greater security, but also speeds up the completion of transactions, since there is no need to wait for long periods to confirm their validity. In addition, validity rollups reduce the amount of data to be stored on the main blockchain, which lowers operating costs.
How does Starknet work?
The key technology behind Starknet is a cryptographic proof-of-stake system known as zk-STARK, which is fundamental to ensuring the privacy and security of transactions, giving it an advantage over older systems such as zk-SNARK. Unlike the latter, zk-STARK does not rely on an initial configuration with trust in a centralized third party, which reinforces decentralization.
In terms of its operational structure, Starknet relies on two main components: sequencers and testers. Sequencers are in charge of organizing and executing transactions, placing them in blocks and making sure everything is processed efficiently. After this, the testers take those blocks and generate cryptographic proofs that guarantee the validity of the transactions. Once this proof has been created, it is sent to Ethereum’s main Ethereum network in the form of a single transaction, containing thousands of transactions bundled together.
When the proof reaches Ethereum, it is verified by a specialized smart contract, which makes sure everything is correct before updating Starknet’s status on the Ethereum main chain. This approach allows the network to process a large number of transactions efficiently, keeping costs low and without saturating the main blockchain.
STRK token: What are its functions and features?
STRK is the native token of the Starknet network, with multiple functions that support both the practical use of the protocol and its governance and security. One of its main uses is the payment of transaction fees within the platform. Users can choose to pay these fees with STRK instead of ETH, giving them flexibility and potentially reducing the costs associated with interactions on the network.
In addition, STRK plays a key role in protocol decision making. STRK holders have the right to participate in Starknet governance, allowing them to vote on proposals that influence the evolution of the network, such as upgrades, parameter adjustments and the implementation of new features. For voting, STRK tokens are temporarily converted to “vSTRK”, giving users the ability to vote directly or delegate their vote to another participant.
STRK is linked to Starknet’s proof-of-stake (PoS) consensus model, in which users can staking their tokens, contributing to the security and decentralization of the network, and receiving rewards in return. In this way, the token not only encourages active community participation, but also helps ensure the stability and efficiency of the network.
Is it a good idea to invest in Starknet (STRK)?
The STRK token is considered one of the top 100 in the crypto market. Its underlying technology has proven to have a great contribution to the growth of the Ethereum ecosystem. This makes its demand continuous and a great opportunity for those investors who aspire to support a project with great potential for future development.
Of course, you should keep in mind that this is not an investment recommendation and that you should do your own research before buying a token or cryptocurrency. Remember to check if your cryptocurrency wallet offers support for this token.
Conclusions
The revolutionary ZK-Rollup technology used by Starknet as Ethereum’s scaling solution has made this platform one of the most valuable in the ecosystem. Ethereum is undoubtedly the most widely used blockchain for the creation of DApps, project development and deployment of Smart Contracts. That is why Starknet has a very significant long-term growth prospect if this trend continues.
Starknet has taken ZK-Rollup technology to the next level through validity rollups. As we have seen, these have represented an evolution with respect to models such as ZK-SNARKS.
